Richard C. Longworth, senior fellow at The Chicago Council on Global Affairs, contributes his knowledge and ideas about issues that affect the Midwest.

Wednesday, June 09, 2010

Guest Post: The Midwest's Creative Winter

by Aaron M. Renn and Carl Wohlt

The Midwest was the Silicon Valley of the industrial revolution. It was home to innovators and entrepreneurs across a range of domains from technology to transportation to business models. The Midwest didn't just invent manufacturing technology, it understood the potential of what that technology could unleash, and positioned itself to reap the commercial harvest of that innovation.

Today it is a different story. The Midwest was in many was a victim of its own success. It built such powerful champion industries, firms, and cities that it no longer had to innovate in order to prosper. So it didn't, and ended up losing its creative edge.

Despite the focus on changing that dynamic, a recent survey shows how far the region still has to go. Fast Company magazine just released its 100 Most Creative People in Business list. Here is the regional breakdown of their honorees:

The Midwest only manages to place six people on the list, and three of them are in Chicago. (The South doesn't fare much better).

What does his mean? One answer is that it means nothing. The list was arbitrarily chosen, and magazine league tables are infamous for being written with an eye towards controversy more than authoritativeness. This list is particularly quirky – Lady GaGa is #1 – and Fast Company themselves describes it as their “idiosyncratic perspective”, inviting us to “enjoy”, “quibble”, and “complain”.

Yet even an arbitrary list is revealing. If nothing else, it suggests that the Midwest brand is held in low regard in many quarters. If the editors at Fast Company look at the Midwest this way, it's safe to assume many others do as well. At some point perception becomes reality, as people don't even put the Midwest on the list for a relocation or business expansion decision. It becomes a great gaping hole in mental geography of global investors.

Possibly the Midwest is in reality more creative than this list would suggest. But if so, it isn't getting its message out. Reputation is a lagging indicator, but the Midwest's aggregate “PR machine” still isn't getting the job done. And of course the list might also be an accurate reflection of reality, with the Midwest simply lacking the critical mass of creative talent.

The answer is likely some of all three. It's no secret that the Midwest took its eye off the ball and has fallen behind in the global economy, far more than its boosters would often like to admit. This list isn't anything new, and it’s consistent with most other surveys that show the Midwest lagging. And that in turn creates a negative perception cycle that obscures the positive things that are going on in the Midwestern pockets of innovation that do exist. We do need a better PR, but also need to make sure we don't let boosterism blind us to the huge challenge at hand.

Midwesterners are a hearty folk capable of enduring challenging hardships, a condition metaphorically re-enacted annually during our harsh winter season. Current economic conditions suggest we are now experiencing a "Global Winter" of the highest magnitude. As our country's our jobless recovery continues, a drumbeat of bad news, of which the Fast Company piece is but the latest installment, makes it look like the great Midwest Global Winter is going to be quite long indeed. Even if the global macroeconomy turns around, absent courageous and forward looking leadership from both the public and private sector, don't look for a Midwestern creative and economic thaw anytime soon.

Also worth pointing out, this list is completely dominated by New York and the Bay Area. (I did see they included Cleveland in the Midwest and Pittsburgh in the North East) If this list--or the perception that created this list--is a problem then it's a problem for all of Texas and Atlanta, North Carolina, Massachusetts, Oregon and Pennsylvania too.

I think the Midwestern cities need to pay attention; a reversal won't just happen. Attract innovation, which I believe means attract more immigrants and youth. Invest in incubating innovators. Improve education in innovative fields - both for higher ed and for trades.

Each of us are on the frontline in terms of communication and connecting, telling stories. Social media gives us access to people that were previously unavailable. We need to use the megaphone and the network.

Eric, even if you completely discount the survey (and I think that's certainly a valid viewpoint), it illustrates importantly the perception of the place. New York and the Bay Area are top of mind when people think of where it's at. The Midwest and South are not. That matters even if there's no reality to it. (And by the way, there's clearly some reality, as this survey only reflects what many other more authoritative people have in the past).

The CEO of a major creative company headquartered in Chicago and with offices in other major cities in the US and Asia said to me recently, "We call ourselves an international firm, but we really cannot be unless we are in New York."

His comment evoked the concept of geographic "spikes" referenced in John Hagel's recent book, "the Power of Pull," and the significance of talent clustering in certain areas to take advantage of the serendipitous encounters that yield creative ideas, expanding opportunities and mutually supported success.

Without question, the Midwest has either done little, or done little ineffectively, in getting a message out about creative businesses and creative opportunity in the region, but it is difficult to develop and attract attention away from the "pull" to established clusters of creative energy in other places.

How much attention could be brought to the Midwest by a more prominent promotion and profiling of the half-dozen people on the FC list, and the inevitable others in their networks who may be doing similarly creative work?

If there is a "lesson" in the Fast Company list, is it that the story of people is more important than the story of place?

But once you understand how Lady Gaga became a global brand almost overnight and how she is rigorously leveraging her brand through a variety of media, you will understand there is much that Midwest cities and states can learn about attracting the attention and interest of investors, visitors and resources.

I'm not joking when I say I would be very interested in hearing her thoughts about the strategies a Midwestern city should consider if it wants to reposition itself in the global marketplace. Maybe that's a bridge too far, but it would probably still be a fascinating conversation.

The Global Midwest Initiative of The Chicago Council on Global Affairs is a regional effort to promote interstate dialogue and to serve as a resource for those interested in the Midwest's ability to navigate today's global landscape.